Her goes: The General Fund primarily the operating fund for the company, it accounts for all of the financial resources available to the organization. It is commonly used by city, county, and state governments, except for those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources, again in a governmental sitting. The sale revenues from gas, water, electric, sewer, storm drain, or any other services the city or county might sell. Each of these entities operate within their own operating budgets called Enterprise Funds.
The following would be considered Utility Enterprise Funds: Electric, Water & Wastewater, Storm water and Solid Waste, which provide full service utility services to a designated area. Revenues are derived from charges to customers and expenditures are made for payroll and cost of operations, as well as capital expenditures, (major capital projects or otherwise known as CIP budgets, capital improvement projects, bridges, water line extensions, etc.) that are legally restricted to expenditures for specified purposes within a given fund.
I used to work in a government environment and this is generally how it works. I will add just one more layer of complexity to this type of accounting, monies in one Enterprise fund to another (horizontally, I like to think of it) is extremely difficult and usually takes major explanations and justifications to transfer to other fund. However, moving dollars vertically within the fund is much easier and take much less justifications.
The utility funds in general contribute heavily to the general fund. The general fund includes all the administrative functions for the entity (accounting, HR, etc.) and they charge back those expenses to the “utility” in the budgeting process. I’ve probably said enough to get you started. Have fun.
